SHANGHAI, Feb. 26, 2026 /PRNewswire/ — Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy” the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Financial and Operating Highlights

• Total cash, short-term investments, bank notes receivable and fixed term bank deposit balance was $2.27 billion at the end of Q4 2025, compared to $2.21 billion at the end of Q3 2025
• Polysilicon production volume was 42,181 MT in Q4 2025, compared to 30,650 MT in Q3 2025
• Polysilicon sales volume was 38,167 MT in Q4 2025, compared to 42,406 MT in Q3 2025
• Polysilicon average total production cost⁽¹⁾ was $5.83/kg in Q4 2025, compared to $6.38/kg in Q3 2025
• Polysilicon average cash cost⁽¹⁾ was $4.46/kg in Q4 2025, compared to $4.54/kg in Q3 2025
• Polysilicon average selling price (ASP) was $5.83/kg in Q4 2025, compared to $5.80/kg in Q3 2025
• Revenue was $221.7 million in Q4 2025, compared to $244.6 million in Q3 2025
• Gross profit was $15.4 million in Q4 2025, compared to $9.7 million in Q3 2025; gross margin was 7.0% in Q4 2025, compared to 3.9% in Q3 2025
• Net loss attributable to Daqo New Energy Corp. shareholders was $7.3 million in Q4 2025, compared to $14.9 million in Q3 2025; loss per basic American Depositary Share (ADS)⁽³⁾ was $0.11 in Q4 2025, compared to $0.22 in Q3 2025
• Adjusted net loss (non-GAAP)⁽²⁾ attributable to Daqo New Energy Corp. shareholders was $7.3 million in Q4 2025, compared to adjusted net income (non-GAAP)⁽²⁾ attributable to Daqo New Energy Corp. shareholders of $3.7 million in Q3 2025
• Adjusted loss per basic ADS⁽³⁾ (non-GAAP)⁽²⁾ was $0.11 in Q4 2025, compared to adjusted earnings per basic ADS⁽³⁾ (non-GAAP)⁽²⁾ of $0.05 in Q3 2025; EBITDA (non-GAAP)⁽²⁾ was $52.5 million in Q4 2025, compared to $45.8 million in Q3 2025; EBITDA margin (non-GAAP)⁽²⁾ was 23.7% in Q4 2025, compared to 18.7% in Q3 2025

Full Year 2025 Financial and Operating Highlights

• Polysilicon production volume was 123,652 MT in 2025, compared to 205,068 MT in 2024
• Polysilicon sales volume was 126,707 MT in 2025, compared to 181,362 MT in 2024
• Revenue was $665.4 million in 2025, compared to $1,029.1 million in 2024
• Gross loss was $137.9 million in 2025, compared to $212.9 million in 2024; gross margin was -20.7% in 2025, compared to -20.7% in 2024
• Net loss attributable to Daqo New Energy Corp. shareholders was $170.5 million in 2025, compared to $345.2 million in 2024. Loss per basic ADS was $2.53 in 2025, compared to $5.22 in 2024
• EBITDA (non-GAAP)⁽²⁾ was $1.7 million in 2025, compared to –$337.4 million in 2024; EBITDA margin (non-GAAP)⁽²⁾ was 0.3% in 2025, compared to -32.8% in 2024
• Adjusted net loss (non-GAAP)⁽²⁾ attributable to Daqo New Energy Corp. shareholders was $114.7 million in 2025, compared to $272.8 million in 2024
• Adjusted loss per basic ADS⁽³⁾ (non-GAAP)⁽²⁾ was $1.70 in 2025, compared to $4.12 in 2024

Management Remarks

Mr. Xiang Xu, CEO of Daqo New Energy, commented, “In 2025, China’s anti-involution initiatives supported the solar PV industry’s gradual emergence from a cyclical downturn. As a result, solar product market prices rebounded from the third quarter onward, with the polysilicon sector posting the most notable gains. Following with this trend, our utilization rate increased from 33% in Q1 to 55% in Q4, bringing our annual production volume to 123,652 MT in line with our guidance of 121,000 MT to 124,000 MT, representing a 39.7% year-over-year decrease from 205,068 MT in 2024. Furthermore, our 2025 sales volume reached 126,707 MT, exceeding production volume and reducing year-end inventory to a reasonable level.

“In the second half of 2025, we strategically ramped up sales efforts to capitalize on favorable pricing dynamics. The strong market response highlighted growing customer confidence in our product quality and their continued preference for our brand in this new pricing environment. However, polysilicon ASPs decreased 7.2% from $5.66/kg in 2024 to $5.25/kg in 2025. This lower pricing, combined with reduced sales volumes, resulted in revenue of $665 million in 2025, compared to $1.0 billion in 2024. Despite the decline in our top-line, we significantly narrowed our losses during the year as compared to 2024. In particular, EBITDA swung to a positive $1.7 million in 2025, compared to negative $337.4 million in 2024, while net loss attributable to Daqo New Energy Corp. shareholders narrowed to $170.5 million from $345.2 million in 2024. Moreover, we generated a $56.1 million in positive operating cash flow in 2025, marking a notable turnaround from the $435 million outflow recorded in 2024.”

“We continued to maintain a strong balance sheet and ample cash reserves. At the end of 2025, we had a cash balance of $980 million, short-term investments of $114 million, bank notes receivable of $136 million, and a fixed term bank deposit balance of $1.0 billion. In total, these highly liquid assets stood at $2.27 billion, representing an increase of $57 million compared to the end of the previous quarter. This solid financial foundation provides us with confidence and strategic flexibility to navigate the ongoing market recovery and capitalize on long-term opportunities.”

“Operationally, we continued to implement proactive measures in Q4 to mitigate market oversupply, including operating at a nameplate capacity utilization rate of 55%. Total polysilicon production for the fourth quarter was 42,181 MT, in line with our guidance range of 39,500 to 42,500 MT, and our sales volume for the quarter reached 38,167 MT. In addition, we comprehensively reduced our production costs through process improvements, manufacturing efficiency gains, and raw material cost optimization. Extending our ongoing cost reduction initiatives, total production costs declined by 9% to $5.83/kg in Q4 2025 from $6.38/kg in Q3 2025. Total idle facility-related costs, which consist primarily of non-cash depreciation expenses alongside approximately $0.10/kg in cash costs for maintenance, also fell to $0.74/kg in Q4 from $1.18/kg in Q3, driven by higher production levels. Notably, cash costs decreased by 2% from $4.54/kg in Q3 to a new record low of $4.46/kg in Q4.”

“In light of current market conditions, we expect our total polysilicon production volume in the first quarter of 2026 to be approximately 35,000 MT to 40,000 MT, and our full year 2026 production volume to be in the range of 140,000 MT to 170,000 MT.”

“Chinese authorities demonstrated strong resolve in tackling irrational competition and industry overcapacity, formally designating anti-involution as a national priority within China’s 15th Five-Year Plan, and the solar PV industry was a key focus of these efforts. These initiatives have driven a structural shift from price-based competition to value-driven differentiation. To advance industry governance, authorities deployed targeted measures including standards guidance, quality supervision, price enforcement, and promotion of technological progress. Specifically, this involved updating legislative frameworks, such as the revised Anti-Unfair Competition Law and the draft amendment to the Price Law, which mandate that sales shall not be below cost. Furthermore, a new mandatory national standard was drafted to set strict energy consumption limits for polysilicon production on a per unit basis.”

“Led by the China Photovoltaic Industry Association, major polysilicon manufacturers have proactively responded to these initiatives, enforcing self-discipline and exploring innovative, market-oriented approaches to combat excess capacity and pricing violations. These coordinated efforts have yielded measurable results in curbing overcapacity. The overall production volumes fell by 28.4% to 1.32 million MT in 2025, and market prices surged more than 50% from the mid-2025 lows to RMB50–56/kg by year-end. Looking ahead, we expect anti-involution initiatives will remain a central theme for the solar PV industry, supporting a more balanced supply and demand dynamic and driving higher-quality growth through 2026.”

“More broadly, the solar PV industry continues to exhibit compelling long-term growth prospects. In 2025, China’s newly installed solar PV capacity grew 14% year-over-year to 317 GW, setting yet another record high and proving that market potential continues to exceed expectations. As the global AI industry scales rapidly, space-based solar power is increasingly viewed as a vital solution to the immense and expanding energy demands of AI data centers, creating a significant new growth engine for the sector. Looking ahead, as one of the world’s lowest-cost producers of the highest-quality N-type polysilicon with a strong balance sheet and no debt, we remain optimistic about the sector and believe we are ideally positioned to capitalize on the market recovery and these long-term growth opportunities. We will continue to strengthen our competitive edge through advancements in high-efficiency N-type technology and cost optimization via digital transformation and AI adoption. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in powering that future.”

Outlook and guidance

The Company expects to produce approximately 35,000 MT to 40,000 MT of polysilicon during the first quarter of 2026. The Company expects to produce approximately 140,000 MT to 170,000 MT of polysilicon for the full year of 2026, inclusive of the impact of the Company’s annual facility maintenance.

This outlook reflects Daqo New Energy’s current and preliminary view as of the date of this press release and may be subject to changes. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.

Fourth Quarter 2025 Results

Revenues

Revenues were $221.7 million, compared to $244.6 million in the third quarter of 2025 and $195.4 million in the fourth quarter of 2024. The decrease in revenues compared to the third quarter of 2025 was primarily due to a decrease in sales volume.

Gross profit/(loss) and margin

Gross profit was $15.4 million, compared to $9.7 million in the third quarter of 2025 and gross loss of $65.3 million in the fourth quarter of 2024. Gross margin was 7.0%, compared to 3.9% in the third quarter of 2025 and negative 33.4% in the fourth quarter of 2024. The increase in gross margin compared to the third quarter of 2025 was primarily because of a decrease in production cost.

Selling, general and administrative expenses

Selling, general and administrative (SG&A) expenses were $18.7 million, compared to $32.3 million in the third quarter of 2025 and $29.4 million in the fourth quarter of 2024. The decrease was primarily due to the reduction in non-cash share-based compensation cost related to the Company’s share incentive plan, which was nil and $18.6 million in the fourth quarter and the third quarter of 2025, respectively.  

Allowance for credit loss

The Company recognized $19.3 million in non-cash expenses related to an allowance for credit losses in the fourth quarter, mainly due to uncertainty regarding the recoverability of long-outstanding other receivables.

Research and development expenses

Research and development (R&D) expenses were $0.7 million, compared to $0.6 million in the third quarter of 2025 and $0.4 million in the fourth quarter of 2024. R&D expenses can vary from period to period and reflect R&D activities that take place during the quarter.

Loss from operations and operating margin

As a result of the foregoing, loss from operations was $20.9 million, compared to $20.3 million in the third quarter of 2025 and $300.9 million in the fourth quarter of 2024.

Operating margin was negative 9.4%, compared to negative 8.3% in the third quarter of 2025 and negative 154.0% in the fourth quarter of 2024.

Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS

As a result of the foregoing, net loss attributable to Daqo New Energy Corp. shareholders was $7.3 million, compared to $14.9 million in the third quarter of 2025 and $180.2 million in the fourth quarter of 2024.

Loss per basic ADS was $0.11, compared to $0.22 in the third quarter of 2025 and $2.71 in the fourth quarter of 2024.

Adjusted net income/(loss) (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted earnings/(loss) per ADS (non-GAAP)

Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was $7.3 million, compared to adjusted net income (non-GAAP) attributable to Daqo New Energy Corp. shareholders of $3.7 million in the third quarter of 2025 and adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. Shareholders of $170.6 million in the fourth quarter of 2024.

Adjusted loss per basic ADS was $0.11, compared to adjusted earnings per basic ADS of $0.05 in the third quarter of 2025 and adjusted loss per basic ADS of $2.56 in the fourth quarter of 2024.

EBITDA 

EBITDA (non-GAAP) was $52.5 million, compared to $45.8 million in the third quarter of 2025 and negative $235.1 million in the fourth quarter of 2024. EBITDA margin (non-GAAP) was 23.7%, compared to 18.7% in the third quarter of 2025 and negative 120.3% in the fourth quarter of 2024.

Full Year 2025 Results

Revenues

Revenues were $665.4 million, compared to $1,029.1 million in 2024. The decrease was primarily due to lower sales volume, further compounded by lower polysilicon ASPs.

Gross loss and margin

Gross loss was $137.9 million, compared to $212.9 million in 2024. Gross margin was negative 20.7%, compared to negative 20.7% in 2024. The decrease in gross loss was primarily due to lower revenue.

Selling, general and administrative expenses

Selling, general and administrative (SG&A) expenses were $118.2 million, compared to $143.1 million in 2024. The decrease was primarily due to the reduction in non-cash share-based compensation cost related to the Company’s share incentive plan, which was $55.8 million and $72.4 million in 2025 and 2024, respectively.

Research and development expenses

Research and development (R&D) expenses were $2.6 million, compared to $4.6 million in 2024. R&D expenses reflect R&D activities that took place during the period and can vary from period to period.

Loss from operations and operating margin

As a result of the foregoing, loss from operations was $270.2 million, compared to $564.1 million in 2024. Operating margin was negative 40.6%, compared to negative 54.8% in 2024.

Interest income, net

Interest income, net was $9.0 million, compared to $30.2 million in 2024. The decrease in interest income was due to lower cash at bank balance as well as lower bank interest rate.

Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS

Net loss attributable to Daqo New Energy Corp. shareholders was $170.5 million, compared to $345.2 million in 2024. Loss per basic ADS were $2.53, compared to $5.22 in 2024.

Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted loss per ADS (non-GAAP)

Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders was $114.7 million, compared to $272.8 million in 2024. Adjusted loss per basic ADS (non-GAAP) were $1.70, compared to $4.12 in 2024.

EBITDA (non-GAAP) 

EBITDA (non-GAAP) was $1.7 million, compared to negative $337.4 million in 2024. EBITDA margin (non-GAAP) was 0.3%, compared to negative 32.8% in 2024.

Financial Condition

As of December 31, 2025, the Company had $980.3 million in cash, cash equivalents and restricted cash, compared to $551.6 million as of September 30, 2025 and $1,038.3 million as of December 31, 2024. As of December 31, 2025, short-term investment was $114.0 million, compared to $431.3 million as of September 30, 2025 and $9.6 million as of December 31, 2024. As of December 31, 2025, the notes receivable balance was $135.5 million, compared to $157.0 million as of September 30, 2025 and $55.2 million as of December 31, 2024. Notes receivable represents bank notes with maturity within six months. As of December 31, 2025, the balance of fixed term deposit within one year was $972.4 million, compared to $1,034.5 million as of September 30, 2025 and $1,087.2 million as of December 31, 2024.

Cash Flows

For the twelve months ended December 31, 2025, net cash provided by operating activities was $56.1 million, compared to net cash used in operating activities of $435.4 million in the same period of 2024.

For the twelve months ended December 31, 2025, net cash used in investing activities was $140.7 million, compared to $1,480.8 million in the same period of 2024. The net cash used in investing activities in 2025 was primarily related to the capital expenditures on the Company’s 5B polysilicon expansion projects in Baotou City, Inner Mongolia.

For the twelve months ended December 31, 2025, net cash used in financing activities was $0.9 million, compared to $47.4 million in the same period of 2024. The net cash used in financing activities in 2025 was primarily related to $0.9 million in stock repurchases made by the Company’s subsidiary, Xinjiang Daqo, to its minority shareholders.

Use of Non-GAAP Financial Measures

To supplement Daqo New Energy’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company’s results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company’s operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management’s use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company’s operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.

The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company’s core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.

A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document.

Conference Call

The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on Thursday, February 26, 2026 (9:00 PM Beijing / Hong Kong time on the same day).

The dial-in details for the earnings conference call are as follows:

Participant dial in (U.S. toll free): +1-888-346-8982

Participant international dial in: +1-412-902-4272

China mainland toll free: 4001-201203

Hong Kong toll free: 800-905945

Hong Kong local toll: +852-301-84992

Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call.

Webcast link:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=ba7I5r8H

A replay of the call will be available 1 hour after the conclusion of the conference call through March 5, 2026. The dial-in details for the conference call replay are as follows:

U.S. toll free: +1-877-344-7529

International toll: +1-412-317-0088

Canada toll free: 855-669-9658

Replay access code: 6386934

To access the replay through an international dial-in number, please select the link below.

https://services.choruscall.com/ccforms/replay.html

Participants will be asked to provide their name and company name upon entering the call.

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) (“Daqo” or the “Company”) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufacturers, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world’s lowest cost producers of high-purity polysilicon.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “guidance” and similar statements. Among other things, the outlook for the first quarter and the full year of 2026 and quotations from management in these announcements, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company’s ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company’s ability to lower its production costs; and changes in political and regulatory environment. Further information regarding these and other risks is included in the reports or documents the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

NUREMBERG, Germany, Feb. 26, 2026 /PRNewswire/ — Guide, a pioneer in thermal imaging, is excited to exhibit its new ApexVision-powered outdoor products at IWA OutdoorClassics. This new technology offers an ultra-clear revolution in infrared visual quality, but we’re excited to move far beyond words in our on-site demonstration of its features and capabilities, with live experience sessions available. Drop by our booth at 4A-511 for a hands-on demonstration with our new, lightweight Orion C series of clip-on thermal imaging attachments.

The Next Generation of Infrared: ApexVision

ApexVision is the culmination of over two decades of engineering effort across software and hardware, which has been extensively integrated across our hunting lineup, most notably in the flagship TU1260MS, to deliver a definitive ultra-clear viewing experience. Built using our new ApexCore S1 detector, ApexVision offers an ultra-high <15mK thermal sensitivity, easily distinguishing between even tiny changes in temperature. Together with this new, high-sensitivity sensor are several key software technologies that further enhance performance, including our Nexus 1.0 image processing platform and our new Hyper-Light 2.0 AI-powered scenario-optimized algorithm, tuned for complete dark and low-light situations to boost details, enhance edges, and suppress noise.

These hardware and software improvements combine to offer improved zoom performance, detail preservation, reduced lag and blur in dynamic situations, real-time target observation, with high contrast and low noise, across all weather conditions. But we don’t just want to tell you about our ApexVision’s capabilities; we want to show you.

IWA Experience Sessions

Guests at IWA OutdoorClassics are invited to visit our booth at 4A-511 to experience ApexVision for themselves with our new Orion C series of compact thermal imaging attachments — accessories for daytime scopes weighing just 285g with rugged capability, all-night battery life, instant start, and exceptional image quality.

With a lightweight construction and next-generation ApexVision imaging, the Orion C series delivers clear and stable thermal imagery for confident target identification. It’s one of the lightest thermal clip-ons available in the market, reducing setup time and providing a better-balanced, stable, and comfortable hunting experience. Its streamlined design and robust build quality also ensure all-weather performance and reliability. With a fast 3-second startup, it’s ready almost instantly during sudden encounters in the field, and a super-low latency of just 26ms ensures real-time, lag-free visuals with no perceptible delay during tracking and aiming.

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Attendees, journalists, hunters, dealers and distributors will be able to experience live, hands-on demonstrations of the ApexVision-powered Orion C series as well as several other Guide products, experiencing this new generational leap in infrared imaging performance for themselves.

Know more at www.guideoutdoor.com or contact enquiry@guideoutdoor.com 

ZHONGSHAN, China, Feb. 26, 2026 /PRNewswire/ — First Mold held its annual general meeting on February 25th, focusing on how best to share departments’ accomplishments. The main agenda of the meeting was to evaluate the company’s success in the past six months of implementing the Amoeba Management model. The model was implemented in the company’s Injection Molding Process Department and organized into different units. Initially, the implementation of this model began as a structural transformation. However, the deliberations from the meeting found that the model has contributed to tangible financial growth. It had also led to operational efficiency, enhancing customer satisfaction.

Breakthrough Progress in Precision Manufacturing

The adoption of the Amoeba units over the past six months has significantly contributed to reforming injection molding. During the meeting, it was realized that every Amoeba unit recorded net profit growth over the past six months, indicating a cumulative profit growth for the First Mold company. In the meeting, Hui He, the leader of the Mold Manufacturing Amoeba, said, “Our manufacturing unit has been receiving more demand. Sales have been increasing over the past six months compared to when we did not adopt the Amoeba model. Interestingly, we significantly reduced the cost of manufacturing and recorded minimal waste”. This implies that the company’s organization into Amoeba models not only increased sales but also reduced waste, thereby increasing net profits.

Overall, the restructuring of First Mold into these Amoeba units has enabled the company to micromanage distinct product systems, thereby improving its precision mold making capabilities. The company currently enjoys enhanced efficiency in its custom injection molding services, offering the best quality to its broader customer base while meeting required targets.

Background and Motivation for Change

First Mold did not choose to shift to Amoeba Management on its own. The company had experienced some level of pressure before rethinking and adopting the model. In its efforts to expand operations and reach new markets, First Mold has experienced increasing global demand for diverse needs. First, the customers have demanded small-batch, high-variety productions. For instance, the company has been experiencing an abrupt increase in the supply of consumer electronics molds for about 2 months before the demand falls off. Integrating such production in their systems has been proven challenging. Thus, they have found it better to develop smaller units that can deal with such specific demands. The other key drivers from customers included rapid tooling development, shorter lead times, and strict cost control.

Initially, the structures at First Mold were inefficient at fulfilling these demands. The systems faced challenges, including slow cycle times, leading to supply backlogs. They further had limited cost transparency. In essence, there was minimal supervision and material selection, which sometimes led to costly production. Some projects require seamless coordination between design and machining. These injection molding requirements were not integrated into the traditional systems, thus leading to inefficiencies.

Because of these ineffective systems, the company experiences an influx of customer feedback demanding improvement. First, the majority of the customers demanded faster response in quick-turn injection molding. Others demanded flexibility in low volume injection molding services. Yet another set of customers wanted stronger support for small batch production. These responses prompted the company to adopt a well-stabilized approach to meeting customers’ demand.

Amoeba Implementation Framework

Biologically, an amoeba is a single-celled organism that operates independently of other cells. The selection of the term “Amoeba” by First Mold was basically to imply that every subsidiary at the company was to deal independently with the specific company’s Injection Molding Process. The three core amoebae include

Three Core Amoebas include Mold & Injection Project Amoeba led by Qing Xu, Mold Design Amoeba led by Tian Lv, and Mold Manufacturing Amoeba led by Hui He. The following are the other nine specialized amoebae.

Interestingly, First Mold gave autonomy, allowing them to account for their operations, determine their operating costs, and calculate their independent profits. There is a cross-unit collaboration among different Amoebas where needed. For instance, mold optimization, Amoeba, and rapid tooling. Amoeba directly interacts with CNC machining to enhance faster design-to-production.

Leadership Perspectives

Different leaders have held different views on implementing the Amoeba models at First Mold. The majority believe that the model is a game-changer in organizational operations, improving the company’s effectiveness. For example, the CEO, James Li, believes that, in addition to accelerating the company’s rapid injection molding, the model has led to the emergence of different leaders in the organization with a strong business ownership mindset. “I didn’t know we had great leaders in our companies. This model has encouraged an independent mindset among different leaders. We have recorded an increase in organizational profits due to the diversification of leadership skills. Amoeba model has made every manufacturing unit in our company accountable for the costs and revenues. We currently have a team of leaders in which managers own their responsibilities. They currently own the business and do not serve as servants of First Mold. With this trend, we project First Mold even growing beyond its boundaries.”

The production director, Bowen Huang, had also concurred with the CEO that Amoebas had indeed contributed immensely to First Mold’s success. The director notes that Amoeba has led to significant gains in the injection molding optimization. The model has expertise in mold design optimization, improving production efficiency. “We faced numerous challenges in the injection molding that, at some point, led to the losses. Sometimes we couldn’t source materials on time, leading to delays in production, which would be reflected in deadline failures.” According to Bowen Huang, the Amoeba model shows that operational metrics indicate improved injection cycle stability.

The sales director, Young Lee, realized there was positive customer feedback. The customers had noted 30% reduction in delivery time. The model eliminated the initial cross-departmental coordination required by the traditional model. This extensive coordination contributed to a series of delays. With the adoption of the Amoeba model, the units collaborate seamlessly. According to Young Lee, customers noted faster project quoting, a high response rate, and a faster design-to-production period.

Measurable Results After Six Months

Case Study: Consumer Electronics Speaker Component Project

To enhance understanding of the role of the Amoeba model, we present a typical application involving the manufacturing of a custom speaker component. Initially, the project experiences some challenges, including tight tolerance requirements, complex internal acoustic structures, and multi-cavity mold precision. The project employed a coordinated application of different amoebas, including the CNC, mold design, and Rapid Tool Assembly. The application of these Amoebas reduced the mold development cycle by 28%. The team achieved stable dimensional tolerance control. Further, they met deadlines, delivering the ready products to clients on time. This integration of different Amoebas led to a seamless transition from prototype tooling to volume production.

Employee Feedback and Annual Meeting Highlights

Employees shared different experiences they found with the adoption of the Amoebas. First, they found that using the model made the performance expectations very clear. Others reported a stronger sense of ownership, while others noted better cross-team communication. One noted, “We had problems with problem-solving. Every time a problem arose, we would spend more time discussing and cross-examining policies from different departments. With this model, we have faster problem-solving cycles.”

Future Plans: Deepening Implementation and Digital Integration

First Mold is optimistic that the current model will put it in a stronger competitive position. However, to keep its operations running, the company plans to first refine its internal pricing mechanism. Second, the company plans to enhance its digital migration by introducing digital performance dashboards. Lastly, First Mold aims to strengthen collaboration between mold design and injection process simulation.

About First Mold

First Mold, a renowned Chinese enterprise engaged in mold manufacturing, plastic injection molding and rapid prototyping, has a 15-year development history. As a modern high-tech manufacturing company, it adopts a dual production base model with facilities in China and Mexico, serving customers in more than 50 countries and regions across the globe. It excels at identifying customers’ pain points and understanding their most pressing needs. First Mold’s mold products, plastic components and metal rapid prototyping parts have won widespread acclaim all the time.

Business Contact:
Name: Young Lee
Position: Sales Manager
Website: https://firstmold.com/
E-mail: sales@firstmold.com
Phone: +86 13925326660